Asked by Sarah Bryan on May 22, 2024
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A capital expenditures budget is prepared before the operating budgets.
Capital Expenditures Budget
A financial plan for a company's planned acquisitions of long-term assets, such as property, plant, and equipment, that are expected to provide benefits over many years.
Operating Budgets
Financial plans that outline projected income and expenses for a business over a specific period, typically one year, guiding daily decision-making.
- Understand the sequential order and interdependence of different types of budgets within the master budgeting process.
- Identify the purposes and impacts of both operating and capital expenditure budgets on financial planning.
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Learning Objectives
- Understand the sequential order and interdependence of different types of budgets within the master budgeting process.
- Identify the purposes and impacts of both operating and capital expenditure budgets on financial planning.
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